Strong revenue growth in the first half of the year

paragon AG / Key word(s): Half Year Results 22.08.2012 08:45 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Delbrück, August 22, 2012: paragon AG continued its impressive year-to-date operating performance in the second quarter of 2012, with revenue advancing by a surprisingly strong 12.8% to EUR 37.6 million in the first six months of the year (prior year: EUR 33.4 million). Despite expenses to safeguard the future in the amount of EUR 1.3 million (new patents, new buildings, new production runs as well as new research and development capacities), the EBIT margin of 13.2% and the EBITDA margin of 19.2% were on the same high level as in the previous year. Earnings before interest and tax (EBIT) grew to EUR 5.0 million (prior year: EUR 4.9 million), while earnings before interest, tax, depreciation, and amortization (EBITDA) rose to EUR 7.2 million (prior year: EUR 7.0 million). Net income reported in accordance with International Financial Reporting Standards (IFRS) came to EUR 3.6 million (prior year: EUR 3.6 million), and earnings per share edged up to EUR 0.88 (prior year: EUR 0.87). paragon's earnings power becomes even more evident when positive one-off items totaling EUR 0.8 million in the first half of 2011 are taken into account. The Company raised its equity-to-assets ratio further in line with forecasts to 31.4% in the first half of 2012 (prior year: 18.2%). Interest-bearing liabilities amounted to only EUR 13.4 million (prior year: EUR 18.2 million), while net debt declined to EUR 5.7 million (prior year: EUR 8.3 million). paragon expects its customers in particular and the automotive industry in general to continue to perform well going forward. Despite the surprisingly strong increase in revenue during the first six months of 2012 the Managing Board is sticking to its conservative forecast for the year as a whole, predicting single-digit percentage revenue growth and earnings (EBIT margin) in line with 2011 levels. Portrait paragon AG has steadily grown to become one of the best-known suppliers to the automotive industry since its founding in 1988 in the Westphalian town of Delbrück. Listed on the stock exchange since 2000, paragon uses innovative solutions that not only improve communication but also make the driving experience healthier, more comfortable, and more efficient. Every worker at paragon is passionate about automobiles. Every day they strive to be inventive, better and unique in all they do. Their dedication goes far beyond sensors and solutions for automotive interiors, however. Increasingly, paragon has been embracing more sophisticated systems such as electric vehicles and kinematics. Contact paragon AG Schwalbenweg 29 33129 Delbrück Tel.: +49 (0) 52 50 - 97 62-0 Fax: +49 (0) 52 50 - 97 62-60 Internet: www.paragon.ag Email: info@paragon.ag Press officer Matthias Hack Tel.: +49 (0) 52 50 - 97 62-141 Mobile: +49 (0) 162 1010724 Fax: +49 (0) 52 50 - 97 62-60 Email: matthias.hack@paragon.ag 22.08.2012 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: paragon AG Schwalbenweg 29 33129 Delbrück Germany Phone: +49 (0)5250 97 62 - 0 Fax: +49 (0)5250 97 62 - 60 E-mail: investor@paragon.ag Internet: www.paragon.ag ISIN: DE0005558696 WKN: 555869 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------